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US Bank Arena falling behind competitors

By Sharon Coolidge;
12:09 a.m. EST February 24, 2014

U.S. Bank Arena, left, and Great American Ball Park right. A bid to bring the 2016 Republican National Convention to Cincinnati has brought the arena in to the spotlight. It's the city's largest indoor event site.
(Photo:
The Enquirer/Cara Owsley
)

A bid to bring the 2016 Republican National Convention to Cincinnati has brought a new urgency to the conversation about what to do about the city’s shabby arena, which is almost 40 years old and hasn’t had a major renovation since 1997.

Simply put: U.S. Bank Arena is so old that the biggest and best conventions and concerts are bypassing Cincinnati in favor of newer, amenity-laden facilities. The author of a study on the arena’s economic impact warned that the arena’s lackluster condition is costing the area’s economy.

“The arena is at a point where they need to make a decision about where they need to be in the next five to 10 years,” said Dan Lincoln, president and CEO of the Cincinnati USA Convention & Visitors Bureau. “It will determine what types of events we – and they – can attract into the arena.”

Ray Harris, Nederlander’s CEO, agrees that competition from newer arenas is fierce. But he said a large-scale renovation would cost at least $100 million – money that can’t be recouped with the Cyclones as the lone tenant.

Still, in an effort to lure bigger and better events, Nederlander is pouring $650,000 into an upgrade that will make room for larger stages and 1,300 additional seats – the pricier ones performers look for when booking venues, Harris said.

Last year, among all arenas, it ranked 96th in the number of concert tickets sold – 143,456, according to industry rankings.

The Republican convention bid is due Wednesday. Site selection is based on more than a city’s arena, although as the event’s main venue – one that will be featured on prime-time television – it’s a key component.

Local Republican leaders say U.S. Bank Arena meets convention criteria. But the site visit – if Cincinnati makes the short list – is more worrisome.

During an exclusive tour of U.S. Bank Arena last week, The Enquirer found small, dark concourses; elevators big enough for just eight or nine people; and 39 suites.

Simply put: It lacked a “wow” factor.

Arena manager Kristin Ropp said the arena transforms dressing rooms to meet artists’ and event needs. For instance, the Cyclones locker room was refitted to house Cher’s wardrobe changes. Backstage rooms are easily transformed with leather couches and carpet.

Nearby cities have newer, nicer arenas

Despite an arena boom across the United States, U.S. Bank Arena’s last major renovation to its 1975 building was 17 years ago. That $14 million infusion of cash meant new seats and heightened ceilings.

Lincoln said that in recent years Cincinnati has lost out on events because U.S. Bank Arena wasn’t big enough or because amenities were better elsewhere.

“Times change, expectations change,” he said. “It’s older, especially when you compare it to Louisville or Columbus or Indianapolis.”

In the bid for the Republican National Convention, Cincinnati is competing against Cleveland and Columbus, which have newer, fancier arenas.

Compare:

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Columbus’s Nationwide Arena is 14 years old, home to the NHL Blue Jackets and nice enough for Columbus Mayor Michael Coleman to make a push to bring an NBA team to Ohio’s capital.

•
Cleveland’s Quicken Loan Arena, home to the NBA Cavaliers, was built with sin tax money. But since it was built in 1994, the team has invested $128 million in the facility.

“It’s been in a spirit of creating a great platform for fans and events and ultimately Cleveland,” said Len Komoroski, CEO of the Cleveland Cavaliers and Quicken Loans Arena. “It represents our city.

•
The Tampa Bay Time Forum, where the 2012 Republican National Convention was held, didn’t let convention goers near the arena until $35 million in improvements had been infused into the 1996 building. Among them: a rebuilt grand plaza entrance, the elimination of some seats and suites to make way for better views, suite upgrades, added concessions and an outdoor party deck facing Tampa’s skyline.

Private ownership means no taxpayer dollars

The flip side of private ownership means unlike many arenas, there’s no public funding in U.S. Bank Arena. Tax money instead pays for Cincinnati’s professional sports stadiums, which cost $1 billion.

Harris said there have been talks with county and city officials over the years about taxpayer-funded improvements.

“They have been supportive of trying to do something, but the right circumstances haven’t lent themselves,” Harris said.

To make the building seem new, about $100 million would have to be poured into a renovation, Harris said.

“That would be great, we would love to do it,” Harris said. “But we have to look at the cost benefit and where it comes from.”

Still, his team works hard to bring in top-flight entertainment, he said. Lady Gaga bypassed Cincinnati, but Bruce Springsteen and Bruno Mars have tour stops in the coming months.

Arena experts say by today’s arena standards, U.S. Bank Arena is considered old and outdated.

Arenas need wide concourses where merchandise can be sold, kitchens equipped to sell more than hot dogs and popcorn, luxury suites, and enough seating to make tour stops – or a national convention – worthwhile.

“Twenty-five years ago arenas were built to get people to their seats,” said Matthew Parlow, a Marquette University associate dean who studies arenas. “Today it’s about the experience.”

Parlow said the new demands spurred an arena building boom over the last two decades – much of it done with at least some public financing.

As Cincinnati looks to the future of its arena, there are challenges, Parlow said.

It’s home to a minor league hockey team, which can play up to 50 home games a year.

“For these buildings to be sustaining, you need multiple anchor tenants,” Parlow said. “The more teams you have, the more nights of year the arena is used, the more productive ... revenue there is.”

Harris, commissioners and even UC officials confirmed they’re talking about possibly moving Bearcats basketball to U.S. Bank Arena, but there’s no specific plan.

UC board Chairman Fran Barrett told The Enquirer earlier this month it was “realistic talk,” but he didn’t know what would come of it.

Julie Heath, director of the University of Cincinnati’s Economics Center, said cities are always seeking a competitive edge to attract high-ticket, high economic impact events.

“Having a large, modern venue certainly helps attract these kind of events,” she said. “They’re a way to draw people to a city and highlight the city. If done right, it is a nice welcome mat.”

It becomes a race to not only stay current, but ahead of the competition, she said.

“It requires a near-constant upgrading,” Heath said. “If you’re going to play in that space, that is the cost of admission.”

There’s no current study of what an improved arena would mean to the region. But a 2007 study commissioned by U.S. Bank Arena and done by the Economics Center found renovation and expansion would have a “significant impact” on the local economy. The study predicted an overhaul would increase the arena’s economic impact from $31.1 million in 2007 to $151.8 million in 2010.

Attendance annually would jump by about half a million visitors a year to 1.3 million people, 249,000 of them from outside the region, according to the study. The out-of-town visitors were predicted to spend $12.8 million a year on food and entertainment.

Study author Jeff Rexhausen, a senior research associate at the Economics Center, said a renovation would bring a big economic impact.

“We’re probably at a point where not investing in the arena results in a loss of economic activity to the region,” Rexhausen said.“They are in competition with other cities and if they don’t do the renovation, at some point you see that affects their ability to bring various events in.”

Hamilton County Commissioner Greg Hartmann, who has met with Harris and is working on the convention bid, said renovations are “going to happen. This community needs them to happen.”

“We need a top-notch indoor arena, and we don’t have one right now,” Hartmann said. “I think we’re going to see a rejuvenated U.S. Bank Arena in the near future.” ?

Meanwhile, in Cleveland

Cleveland nonprofit groups and community leaders are launching an organized effort to lure a national political convention to northeast Ohio’s largest city in 2016.

The Plain Dealer reports a nonprofit corporation has been formed to work on bids, and city and county leaders will consider legislation to assemble a pledge of financial support or other services, such as police staffing.

Mayor Frank Jackson says Cleveland has the necessary event and hotel space for such a convention, which could help boost the local economy and tourism.

Associated Press

Nationwide Arena

Where: Columbus

Opened: 2000

Public or private: Two years ago the City of Columbus and Franklin County paid $250 million to purchase, operate and maintain the sports arena through 2039. It will use revenue from the state’s casinos to pay back the loan.

About: It’s home to the NHL’s Columbus Blue Jackets. Columbus Mayor Michael B. Coleman has pushed to bring the NBA to the area, which can seat up to 21,000 people.

2013 concert ticket sales: 131,604

2013 Pollstar* ranking: 105

Quicken Loans Arena

Where: Cleveland

Opened: 1994

Public of private: Built for $100 million with sin taxes.

About: Tenants include NBA Cleveland Cavaliers; an American Hockey League team, an Arena Football League team and the Mid-American Conference Basketball tournaments. It seats 20,562, including 2,000 club seats and 88 luxury seats. Among the food options are restaurants by Iron Chef Michael Symon.

2013 concert ticket sales: 241,126

2013 Pollstar ranking: 65

Tampa Bay Times Forum

Where: Tampa

Opened: 1996

Public or private: The City of Tampa contributed $86 million of the $139 million cost to build it.

Tenants: Home to to NHL’s Tampa Bay Lightning and a Arena Football League team.

About: The 2012 Republican National Convention was held here. It can seat up to 21,000 people. The Ford Thunder Alley, the Forum’s newly renovated main entrance plaza, was designed as a place for fans to hang out an enjoy live music and interactive games. Its “World of Beer” is considered a top destination for specialty and craft brews.

2013 concert ticket sales: 212,736

2013 Pollstar ranking: 73

The KFC Yum! Center

Where: Downtown Louisville

Opened: 2010

Public or private: Cost: $238 million. Part of a $450 million public project that included a 975-car parking structure and floodwall.

About: Yum! Brands paid $13.5 million for the naming rights and the food of its three chains – KFC, Pizza Hut and Taco Bell – are sold in the arena. The University of Louisville men's and women's basketball teams are the arena’s primary tenants, making it the fourth-largest college basketball arena in the country. The arena's current attendance record is 22,815, set when Louisville played Notre Dame in 2013.

2013 concert ticket sales: 299,427

2013 Pollstar ranking: 53

Sprint Center

Where: Kansas City, Mo.

Opened: 2007

Public or private: Owned by the city, it cost $276 million – 10 percent more than the originally projected $250 million – to build. The city paid 80 percent, AEG the remaining 20 percent. In 2004 voters passed a 7.5 percent convention and tourism tax charged to everyone else using city hotels.

About: Widely considered one of the best arenas in the country, the arena seats more than 19,000 people and has 72 suites. Unlike other new arenas, the Sprint Center doesn’t have a major tenant. The city is in talks with the NHL and NBA to bring teams to the city. Its exterior is made completely of glass. Inside it has a circular 360-degree video screen. Kansas City is also making a bid to bring the Republican National Convention to its city.

2013 concert ticket sales: 464,076

2013 Pollstar ranking: 26

* Pollstar is the leading concert tour industry trade publication.

Nationwide Arena

Where: Columbus

Opened: 2000

Public or private: Two years ago the City of Columbus and Franklin County paid $250 million to purchase, operate and maintain the sports arena through 2039. It will use revenue from the state’s casinos to pay back the loan.

About: It’s home to the NHL’s Columbus Blue Jackets. Columbus Mayor Michael B. Coleman has pushed to bring the NBA to the area, which can seat up to 21,000 people.

2013 concert ticket sales: 131,604

2013 Pollstar* ranking: 105

Quicken Loans Arena

Where: Cleveland

Opened: 1994

Public of private: Built for $100 million with sin taxes.

About: Tenants include NBA Cleveland Cavaliers; an American Hockey League team, an Arena Football League team and the Mid-American Conference Basketball tournaments. It seats 20,562, including 2,000 club seats and 88 luxury seats. Among the food options are restaurants by Iron Chef Michael Symon.

2013 concert ticket sales: 241,126

2013 Pollstar ranking: 65

Tampa Bay Times Forum

Where: Tampa

Opened: 1996

Public or private: The City of Tampa contributed $86 million of the $139 million cost to build it.

Tenants: Home to to NHL’s Tampa Bay Lightning and a Arena Football League team.

About: The 2012 Republican National Convention was held here. It can seat up to 21,000 people. The Ford Thunder Alley, the Forum’s newly renovated main entrance plaza, was designed as a place for fans to hang out an enjoy live music and interactive games. Its “World of Beer” is considered a top destination for specialty and craft brews.

2013 concert ticket sales: 212,736

2013 Pollstar ranking: 73

The KFC Yum! Center

Where: Downtown Louisville

Opened: 2010

Public or private: Cost: $238 million. Part of a $450 million public project that included a 975-car parking structure and floodwall.

About: Yum! Brands paid $13.5 million for the naming rights and the food of its three chains – KFC, Pizza Hut and Taco Bell – are sold in the arena. The University of Louisville men's and women's basketball teams are the arena’s primary tenants, making it the fourth-largest college basketball arena in the country. The arena's current attendance record is 22,815, set when Louisville played Notre Dame in 2013.

2013 concert ticket sales: 299,427

2013 Pollstar ranking: 53

Sprint Center

Where: Kansas City, Mo.

Opened: 2007

Public or private: Owned by the city, it cost $276 million – 10 percent more than the originally projected $250 million – to build. The city paid 80 percent, AEG the remaining 20 percent. In 2004 voters passed a 7.5 percent convention and tourism tax charged to everyone else using city hotels.

About: Widely considered one of the best arenas in the country, the arena seats more than 19,000 people and has 72 suites. Unlike other new arenas, the Sprint Center doesn’t have a major tenant. The city is in talks with the NHL and NBA to bring teams to the city. Its exterior is made completely of glass. Inside it has a circular 360-degree video screen. Kansas City is also making a bid to bring the Republican National Convention to its city.

2013 concert ticket sales: 464,076

2013 Pollstar ranking: 26

* Pollstar is the leading concert tour industry trade publication.

Meanwhile, in Cleveland

Cleveland nonprofit groups and community leaders are launching an organized effort to lure a national political convention to northeast Ohio’s largest city in 2016.

The Plain Dealer reports a nonprofit corporation has been formed to work on bids, and city and county leaders will consider legislation to assemble a pledge of financial support or other services, such as police staffing.

Mayor Frank Jackson says Cleveland has the necessary event and hotel space for such a convention, which could help boost the local economy and tourism.